Local Government and Demand-Side Bidding

Technical Report · Sat Dec 01 04:00:00 EST 1990

DOI:https://doi.org/10.2172/5903783· OSTI ID:5903783

Vine, Edward ^[1]

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1. Lawrence Berkeley National Laboratory (LBNL), Berkeley, CA (United States)

As part of Lawrence Berkeley Laboratory's (LBL) technical assistance to the Sustainable City Project, the issue of DSM bidding was examined as a possible option for local government. The recent interest and activity in DSM bidding around the country presents an opportunity for local government. Potential benefits for local government include increased installation of energy efficiency measures in municipal facilities and in the community, economic development, an additional source of revenue to help pay for municipal programs (including additional conservation efforts), and an enhanced local image. Local government will most likely participate in DSM bidding as a customer or as a client of an energy service company (ESCO). The exact role will depend on local government's response to key issues associated with DSM bidding, such as performance guarantees, quality assurance procedures (measuring savings and providing financial security), and the administrative burden. In addition, local government will have to weigh the advantages and disadvantages of working with an ESCO. While local government has not yet participated in DSM bidding, local government is in a unique position to take advantage of energy efficiency opportunities as owner-operators of municipal facilities which consume significant amounts of energy, planners and regulators of new development, and general providers of services and assistance to their communities. Furthermore, local governments have lower risks (in terms of program success) than small businesses, and local governments' credibility and experience in dealing with customers may reduce high transaction costs associated with DSM bidding. Despite these advantages, local governments should take a cautious approach in participating in DSM bidding processes, and should carefully examine other strategies for promoting energy efficiency (including participation in conventional utility programs) prior to participating in DSM bidding.

• Research Organization: Lawrence Berkeley National Laboratory (LBNL), Berkeley, CA (United States)
• Sponsoring Organization: USDOE Office of Conservation & Renewable Energy (CE)
• DOE Contract Number: AC03-76SF00098
• OSTI ID: 5903783
• Report Number(s): LBL--29878; ON: DE91010232
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
BIDS
DEMAND
DEMAND FACTORS
EFFICIENCY
ENERGY EFFICIENCY
ENERGY MANAGEMENT
LOCAL GOVERNMENT
MANAGEMENT
PERFORMANCE
QUALITY ASSURANCE
SUPPLY AND DEMAND